The long-gestating project, which stars Johnny Depp, was put on hold last month over budget concerns. However, as of mid-August producer Jerry Bruckheimer and director Gore Verbinski were working to save the Western, offering to take a pay cut in an effort to shrink the film's $250m (£152m) price tag.
Now, a source has said that Disney will announce a decision with respect to the film sometime after Labour Day, The Wrap reports.
The studio is reportedly keen on coming to a favorable resolution for the film so as not to antagonize Depp or Bruckheimer.
In late August, Verbinski was rumoured to have been axed from the project after Disney executive Rich Ross suggested the film could go ahead without the Pirates of the Caribbean director.
Depp first signed on to the film in 2008, with the actor being tapped to play the titular character's Native American sidekick Tonto.
Helena Bonham Carter and The Social Network's Armie Hammer joined the project earlier this year.